Some server targets, such as the synology emby server are by design hosted on low powered hardware. Even if your server is running on decent hardware, there are use cases for this.
I would like to have a way to offload and load balance transcoding tasks to other hardware. Building a transcoding client would allow this. load balancing could be done across the transcoding clients, and one or more could be co-hosted with the server to handle some transcoding there. It would allow availability of the server and clients needing transcoding. I saw a thread briefly discussing this from 2015, but can't find anything more recent, so I wanted to bring it up again.